Asian markets trade mixed amid rising Middle East tensions

Equity markets in Asia finished on a split note on Tuesday, according to Mettis Global, as traders stayed wary of escalating Middle East tensions and fresh US measures against Tehran and parties that support its economy. Japan's Nikkei 225 gave up 0.55%, while the wider Topix eased marginally, and South Korea's Kospi dropped 2.37%. Australia's S&P/ASX 200 bucked the trend with a 0.29% gain, per CNBC figures carried in the report.

Washington's global sanctions initiative, which targets entities accused of propping up Tehran's economy, weighed on sentiment. US Treasury Secretary Scott Bessent cautioned that businesses keeping economic ties with Iran could face greater isolation. Wall Street closed mixed in its last session, with the S&P 500 lower by 0.28% and the Nasdaq Composite down 0.76% amid weak tech and chip stocks. The Dow Jones Industrial Average, however, gained 140.15 points, or 0.26%.

Traders are looking ahead to Tuesday's consumer confidence figures, Nvidia's quarterly results and the July personal consumption expenditure inflation reading. US Treasury yields eased after reports that the Treasury could tap its General Account to widen government bond buying, and the 10-year yield slid to 4.7%, a drop of over three basis points. Fed Chair Kevin Warsh is due to address the Jackson Hole gathering on Friday.